Hedge funds are gambling, while production is crashing. The real estate bubble is over, and going down. New York City is beautiful, that's why I take pictures of it, but it's the belly of the beast.

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Real Crash - March 2008

What Really Happened with Bear Arse

March 21st 2008 14:32

Real Crash- Looking at Capitalism and its Laws:

Beatles- That's What I Want

You know that your love gives me such a thrill.
But, bail out my MBS and pay my bills.
It's money and lots of it,
That's what I want!!!1

(spoof: many artists: Money's What I Want)

The Federal Reserve has paid $30 billion out and accepted $30 billion of bad paper. That is what really happened in the Bear (Arse) Stearns deal. This has been attacked on TV as dubious even by former Fed Res Chairman Paul Volcker, not exactly a saint, but this is too much for him. That is a $30-billion bailout for a NOT federally insured investment bank. Chase essentially is buying Bear Stearns for nothing, ie for a penny on the dollar of Bear Stearns worth as of a few months ago.

As for Congressman Henry Waxman, he could do the nation a favor and investigate this fraud. This has gone beyond a Repub-Dem issue. Obviously, Democrats such as Speaker Nancy Pelosi and Banking Cte. Chair Barney Frank are up to their eyeballs in going along with this ripoff and hyperinflation.

Have you heard about the new circus in Boston, Ma. It's called the Barney and Bailout Show. That is what Barney Frank is up to.

The next disgusting sellout of the nation on the agenda is Barney Frank's proposal to buy-up $300 Billion (sic!) of bad home and commercial mortgages and Mortgage Backed Securities (MBS). That is why Hillary Clinton's partial acceptance of LaRouche's plan to FREEZE the mortgage payments and then the interest rates is so important and revolutionary (that means good). Then you have to protect the Chartered Banks from the ensuing crash.

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Posted By: Howard - Category: No Category

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Comments

6 Comments. [ Add A Comment ]

Comment by S.L.

March 21st 2008 15:01

The Political Brief

Howard, I know you want to see Hillary as the savior of our financial system. She isn't Robin Hood, who will take from the rich and give to the poor. The promises she makes for "saving the economy" are nothing but promises. She doesn't intend to keep her word, beyond her first day in the White House. Bigger government is NOT the answer, Howard. Let the big banks bail each other out, stop worrying about it! Pres. Bush is trying to help the abused home buyers with new changes in the system. Taking over the whole thing and socializing it won't work. Can you name even one program that is run by the government that actually works like it's supposed to? Of course not. Bureaucracies feed themselves at the expense of everyone else. Creating a new bureaucracy to "fix" the housing market and banking problems isn't the solution. Lower taxes will enable the buyers to afford their payments better. Free enterprise will keep competition going for replacement loans and get the economy rolling again. A government take-over with do far more harm than good. And a Waxman investigation would be a costly waste of time.

Comment by Howard

March 21st 2008 15:08

Real Crash

I guess you like Barney Frank's "The Barney and Bailout Circus" too. Do Bankers get Welfare just because they are supposed to be smart and part of the oligarchy? Or is this the British Empire again? Time for an American Revolution.

Comment by S.L.

March 21st 2008 15:50

The Political Brief

Barney Frank and I have nothing in common, Howard. If one big business wants to come to the rescue of another big business, who am I to say yes or no. As Ronald Reagan once said, "Government isn't the answer, government is the problem."

Comment by Howard

March 21st 2008 20:32

Real Crash

Bear Stearns was bailed out by the Federal Reserve. The ridiculous "sale" of Bear to Chase was total crap. I mean a penny on a dollar? They actually paid Chase to take the name, and carcass.

Comment by S.L.

March 22nd 2008 02:12

The Political Brief

Are you absolutely sure about that, Howard? President Bush commented that Chase had bought Bear Sterns. Seems to me like he would have mentioned it if the government had been the one paying. Wouldn't you think? He said that big companies should support one another and the government would help the "little guy" if necessary. Can you prove it, or are you just buying into spin? I seriously want to know.

Comment by Howard

March 22nd 2008 03:06

Real Crash

Yes, I am sure. This was a bailout and also probably a violation of Money Laundering statues. It was laundered. (By the way this is an interesting angle to the situation, now that you bring it up.)

It's a simple trick. The Fed Reserve accepts $30 billion dollars of "securities" at face value. Yet on the market now they would be worth, perhaps not 1-cent on the dollar, but a lot less. This is how bail outs are run, illegally. You buy the paper and say it is worth "x". As for President Bush, in this case, he read the speech, he certainly didn't write it.

As Former Federal Reserve Chairman Paul Volcker said, quoted in the L.A. Times, if they want to do that (bail out Bear) fine, but that has to be approved by the US Treasury. That cannot be run through the Fed Reserve. The Fed is overstepping their powers. See the link above.

Volcker calls the Bear Stearns bailout "a new departure." And of course Lyndon LaRouche has been clear on this for a long time. Volcker represents someone with more institutional background.

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